Securities and Exchange Commission (SEC) Memorandum Circular 37-2020: Regulatory Reliefs to Net worth, Investments and Government Period Requirements
SEC issued MC No. 37-2020 extending the regulatory reliefs to duly registered and licensed Financing and Lending Companies in accordance with R. A. 11494 (Bayanihan to Recover As One Act). The following are the regulatory reliefs available:
1. Relaxation of the required maintaining net worth of Financial Companies (FC) under Sec. 11 of Financing Company Act (FCA) Implementing Rules and Regulations.
2. Relaxation of the required investment in Financing and Lending activities under Sec. 9(b)of the FCA IRR and Rule 3 (f) of the Lending Company Regulation Act (LCRA) IRR, respectively, subject to the evaluation of the Commission.
3. Relaxation of the period of commencement of Financing and Lending operations under Sec. 5(b) and 6(d) of the FCA IRR and Rule 3(e) of the LCRA IRR respectively.
The following requirements are to be submitted in order to avail the said reliefs.
1. Letter notification stating the Company’s intention to avail the regulatory reliefs which should include:
- Detailed explanation of the debt relief measures provided by the company to its borrowers.
- A statement that the Company is in good standing with the Commission.
This shall be signed by the Company’s President or the Company’s officer of equivalent rank.
2. Resolution of the Board of Directors authorizing the company to avail of the regulatory reliefs.
The Company’s application shall be subject to the Commission’s Evaluation which shall be on a case to case basis.
The regulatory reliefs shall be effective One (1) year from the effectivity of the circular.
Attached also is the link to the Memorandum Circular for your reference.
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